Insolvency cases in Romania surge by nearly 35% in October

Business Forum
In October, there was a significant rise in insolvency filings, signalling mounting pressure on the business environment. According to financial analysis platform RisCo, 989 insolvency cases were registered during the month, marking a substantial 34.7% increase compared to the same period the previous year. Over the last 12 months, the number of insolvency cases has grown by approximately 35%.

While Bucharest saw a year-on-year decrease of 3% in October, registering 194 cases, the national trend remains sharply upwards. The rising number of insolvencies suggests increasing difficulties for companies in covering total expenses, possibly due to declining revenues, soaring operational costs, or inefficient financial management. 

This trend is also seen as a reflection of widespread pressure on the business sector, driven by economic instability, inflation, and restricted access to financing.

Cătălin Dumitrescu, General Director at RisCo, said: "A thorough verification protects investments and builds solid, trusting business relationships. In this economic context, partner verification is a strategic move."

Several other regions reported massive increases in filings compared to October 2024, highlighting national vulnerability. Maramureș saw a staggering 411% increase, from 9 cases to 46. Brăila followed suit with a 375% rise, registering 19 cases, demonstrating that geographical advantages are no longer sufficient protection against current economic pressures. 

Significant increases were also noted in Sibiu (240%, up to 34 cases), Vaslui (233%, up to 10 cases), and Ilfov (200%).

Sector-wise, the most affected area was cultivation of non-perennial crops, where insolvencies jumped by roughly 163%. This was closely followed by electrical and sanitary installation works and other construction installations, with a 120% increase. 

Road freight transport and moving services also saw an 88% rise in filings. These widespread fluctuations across diverse sectors indicate that economic instability is a general trend of volatility impacting the entire economy.

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